Gold prices declined in European trading on Tuesday for the first time in the past five sessions, retreating from a four-week high recorded earlier during Asian trading, as corrective selling and profit-taking activity emerged alongside pressure from a stronger US dollar.

With expectations for a Federal Reserve interest rate cut in March fading, markets are awaiting further evidence regarding the path of US monetary policy throughout this year.

Price Overview

Gold prices today: gold fell by 1.6% to $5,145.37, down from the opening level of $5,227.80, after reaching a session high of $5,249.88 — the highest level since January 30.

At Monday’s settlement, gold prices rose by 2.4%, marking a fourth consecutive daily gain, supported by Trump’s tariffs.

US dollar

The dollar index rose by 0.2% on Tuesday, resuming gains that had paused over the previous two sessions, reflecting renewed strength in the US currency against a basket of major and secondary currencies.

As is well known, a stronger US dollar makes gold bullion priced in dollars less attractive to buyers holding other currencies.

The rise comes as investors assess the implications of renewed disruptions linked to the tariff system imposed by US President Donald Trump on global trade.

US President Donald Trump warned countries on Monday against abandoning recently negotiated trade agreements with the United States after the Supreme Court canceled his emergency tariffs, saying that if they did so, he would impose significantly higher tariffs under other trade laws.

US interest rates

Federal Reserve Governor Christopher Waller said he is open to keeping interest rates unchanged at the March meeting if February employment data indicates that the labor market has “stabilized” after weak performance in 2025.

According to the CME Group FedWatch tool, pricing for keeping US interest rates unchanged at the March meeting remains steady at 95%, while the probability of a 25 basis point rate cut stands at 5%.

To reassess these expectations, investors are closely monitoring upcoming US economic data releases, in addition to comments from Federal Reserve officials.

Gold outlook

Market strategist Ilya Spivak said that gold prices saw a notable surge yesterday, and that the market is now experiencing a period of relative stabilization, adding that it is noteworthy that the panic seen on Wall Street has not spread to Asian markets.

Spivak added that the rise in the US dollar and profit-taking by investors were the main reasons behind the decline in gold prices.

SPDR Gold Trust

Holdings in the SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, increased by 7.72 metric tons on Monday, bringing total holdings to 1,086.47 metric tons, the highest level since January 30.

The euro declined in European trading on Tuesday against a basket of global currencies, resuming losses that had paused over the previous two sessions against the US dollar, and moving closer again to a four-week low. The decline comes amid unsettled global market conditions driven by Donald Trump’s latest tariff measures.

Expectations for at least one European interest rate cut this year have strengthened, especially as inflationary pressures on policymakers at the European Central Bank continue to ease. Investors are awaiting further key economic data from Europe to reassess those expectations.

Price Overview

The euro exchange rate today: the euro fell against the dollar by about 0.15% to $1.1768, down from the opening level of $1.1785, while recording a session high of $1.1796.

The euro ended Monday’s trading up by around 0.1% against the dollar, marking a second consecutive daily gain, as recovery continued from a four-week low of $1.1742.

US dollar

The dollar index rose by 0.2% on Tuesday, resuming gains that had paused over the previous two sessions, reflecting renewed strength in the US currency against a basket of major and secondary currencies.

The rise comes as investors assess the implications of renewed disruptions related to the tariff system imposed by US President Donald Trump on global trade.

Trump announced on Saturday that temporary tariffs on US imports from all countries would be raised from 10% to 15%, in a rapid response to the historic US Supreme Court ruling on Friday that determined Trump’s broad tariffs exceeded his authority.

The Wall Street Journal reported that the Trump administration is considering imposing new national-security-related tariffs on industries including large-scale batteries, cast iron and fittings, plastic pipes, industrial chemicals, and power and communications network equipment.

European Parliament

The European Parliament decided on Monday to delay a vote on a trade agreement with the United States in response to what it described as “tariff chaos” created by President Donald Trump’s recent decisions.

Some European lawmakers described the current agreement as favoring the United States, arguing that US products would gain zero-tariff access to European markets while Europe would still face tariffs of up to 15%, increasing pressure to suspend ratification.

European interest rates

Data released recently in Europe showed a decline in headline inflation levels during December, indicating easing inflationary pressures on the European Central Bank.

Following those figures, money markets increased pricing for a 25 basis point interest rate cut by the European Central Bank at its March meeting from 10% to 25%.

Traders also adjusted their expectations from keeping interest rates unchanged throughout the year to anticipating at least one 25 basis point cut.

To reassess these expectations, investors are awaiting additional eurozone economic data on inflation, unemployment, and wage levels.

The Japanese yen declined in Asian trading on Tuesday against a basket of major and secondary currencies, resuming losses that had temporarily paused yesterday against the US dollar and approaching its lowest level in nearly two weeks, after Nikkei reported that US monetary authorities conducted reviews of the dollar/yen exchange rate without a request from Japanese monetary authorities.

As inflationary pressures ease on policymakers at the Bank of Japan, expectations for a Japanese interest rate hike in March have declined. Investors are now awaiting المزيد of key economic data from Japan to reassess those expectations.

Price Overview

The Japanese yen exchange rate today: the dollar rose against the yen by 0.45% to 155.31 yen, up from the opening level of 154.64 yen, while recording a session low of 154.52 yen.

The yen ended Monday’s trading up 0.25% against the dollar, marking its first gain in four sessions, as part of a recovery from a nearly two-week low of 155.64 yen.

Aside from buying at lower levels, the Japanese yen rebounded due to concerns linked to Trump’s tariff moves following the historic US Supreme Court ruling.

Monetary authorities

Japan’s Nikkei newspaper, citing unnamed US government sources, reported that US monetary authorities initiated “exchange rate reviews” last January to support the yen.

The newspaper said the exchange rate reviews conducted by the Federal Reserve Bank of New York, on behalf of the US Treasury Department, were carried out without a request from Japan’s Ministry of Finance.

The report added that US Treasury Secretary Scott Bessent led the exchange rate review process amid concerns that political instability ahead of Japan’s general election could destabilize Japanese markets and spill over into global financial markets.

According to the newspaper, citing senior officials close to Bessent, US authorities viewed the exchange rate review as a preliminary step toward possible intervention through yen purchases, and considered intervening in the currency market to support the yen if Tokyo requested it.

Several senior US officials said the exchange rate review led by Bessent was based on the principle that the United States is prepared to use its economic strength to promote stability for its allies.

Japanese interest rates

Data released at the end of last week in Tokyo showed Japan’s core inflation rate fell in January to its lowest level in two years, easing inflationary pressure on the Bank of Japan.

Following that data, pricing for a quarter-point interest rate hike by the Bank of Japan at its March meeting fell from 10% to 3%.

Pricing for a quarter-point rate hike at the April meeting also declined from 50% to 30%.

According to the latest Reuters poll, the Bank of Japan may raise interest rates to 1% by September.

Investors are now awaiting additional data on inflation, unemployment, and wage growth in Japan to reassess these expectations.

Ripple Labs Inc. (XRP) rose above the $1.40 level at the time of writing on Monday, despite renewed pressure stemming from tariff-related tensions across the broader cryptocurrency market. The decline to $1.33 — the session low — was linked to macroeconomic uncertainty, geopolitical tensions, and a shift by investors toward lower-risk assets.

Slowing investment flows into XRP as capital exits Bitcoin and Ethereum

Investment flows into XRP-related products declined to $3.5 million last week, according to a report by CoinShares International Limited. This represents a 90% drop compared with the previous week’s inflows of $33 million. Average assets under management stand at approximately $2.6 billion, while year-to-date inflows have reached $151 million.

By contrast, Bitcoin investment products remained under selling pressure, recording outflows of $215 million last week. Despite the selling that pushed the cryptocurrency below $65,000, total assets under management stood at $104 billion, while year-to-date outflows reached around $1.3 billion.

The CoinShares report said Bitcoin was the main driver of negative market sentiment, with inverse Bitcoin investment products recording inflows of $5.5 million — the largest among asset categories.

Ethereum also recorded outflows of $36.5 million last week, bringing total year-to-date outflows to $494 million.

Retail investor interest remains stable

Derivatives data indicates stable retail investor interest in XRP, as open interest in XRP futures contracts rose to $2.4 billion on Monday, compared with $2.33 billion the previous day, according to CoinGlass data.

Rising open interest signals increased risk appetite among investors, which could improve the chances of a price recovery in upcoming sessions.

Technical analysis: recovery prospects remain limited

XRP is trading around $1.40, supported by the MACD indicator, which remains above the signal line on the daily chart. However, the shrinking green histogram bars suggest that upside momentum may be limited.

At the same time, the relative strength index (RSI) stands at 39, well below the neutral zone, reflecting continued weakness in the currency’s broader technical structure.